Centre Denies Bihar Special Status, Lalu Yadav’s Party Responds Sharply

The Centre has dismissed any plans to grant Bihar special category status, a key demand of its ally, the Janata Dal (United) (JDU), which has led to criticism from the Rashtriya Janata Dal (RJD) directed at Bihar Chief Minister and JDU leader Nitish Kumar.

Ramprit Mandal, a JDU Member of Parliament from Bihar’s Jhanjharpur, inquired with the Finance Ministry regarding the possibility of granting special status to Bihar and other underdeveloped states to boost economic growth and industrialization. In a written reply, Minister of State for Finance Pankaj Chaudhary stated that the case for special category status for Bihar is not justified.

“The Special Category Status for plan assistance was previously granted by the National Development Council (NDC) to certain states based on criteria such as hilly and difficult terrain, low population density, a significant tribal population, strategic location along borders, economic and infrastructural backwardness, and non-viable state finances,” Chaudhary’s response elaborated. He also mentioned that an Inter-Ministerial Group (IMG) reviewed Bihar’s request for special status and concluded on March 30, 2012, that Bihar did not meet the NDC criteria.

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Special status entails increased central support to expedite the development of a backward state. Though not provided for in the Constitution, special status was introduced following recommendations from the Fifth Finance Commission in 1969. States that have received this status include Jammu and Kashmir (now a Union Territory), several Northeastern states, and hill states like Himachal Pradesh and Uttarakhand. States with special category status benefit from increased central funding and various tax concessions.

The JDU has long advocated for special status for Bihar. Given the BJP’s lack of a majority in the recent elections and its coalition with the JDU, TDP, and other parties, it was anticipated that Nitish Kumar’s party would vigorously pursue this demand. The JDU reiterated this demand at an all-party meeting before the budget session.

JDU MP Sanjay Kumar Jha emphasized that securing special state status for Bihar has always been a priority for the JDU. “Our party has consistently demanded special state status for Bihar. Chief Minister Nitish Kumar has organized significant rallies for this cause. If the government finds it challenging to grant this status, we have requested a special package for Bihar,” he stated, according to a PTI report.

Following the Centre’s clear stance against granting special status, the RJD, Bihar’s main opposition party, criticized the JDU, which governs the state in alliance with the BJP. “Nitish Kumar and JDU leaders should enjoy the benefits of power at the Centre and continue their drama politics on special status,” the RJD remarked in a post on X (formerly Twitter).